Shares of online auctioneer Ebay Inc. (Nasdaq: EBAY) rose over 3 percent in Tuesday trading after a Wall Street analyst boosted the company's revenue and earnings outlook for the firm's first quarter.

In a note to clients this morning, Bear Sterns' Robert Peck lifted his first-quarter adjusted earnings forecast to 31 cents per share from 30 cents and his revenue estimate to $1.74 billion from $1.71 billion. The analyst believes Ebay is seeing higher average selling prices across its platform, and also higher conversion rates.

J.P. Morgan kept its revenue and earnings forecast steady, saying more productive listings would be offset by seasonality.

"We believe upside could be driven by the higher mix of productive listings, lower Stores listings growth rate and continued conversion rate improvement - offset by seasonality of Shopping.com and sequentially lower consumer electronics sales, Imran Khan of J.P Morgan told clients.

Ebay rose $1.12 in mid-day trading, gaining 3.4 percent to $34.12 on the Nasdaq Stock Market.

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